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A business firm reduces the number of hours its employees

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A business firm reduces the number of hours its employees

by BTGmoderatorDC » Sun Jul 29, 2018 4:54 pm

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A business firm reduces the number of hours its employees work from 40 hours per week to 36 hours per week while continuing to pay the same amount of money. If an employee earned x dollars per hour before the reduction in hours, how much does the employee earn per hour under the new system?

(A) 1/10
(B) x/9
(C) 9x/10
(D) 10x/9
(E) 9x
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by Jay@ManhattanReview » Mon Jul 30, 2018 2:46 am
BTGmoderatorDC wrote:A business firm reduces the number of hours its employees work from 40 hours per week to 36 hours per week while continuing to pay the same amount of money. If an employee earned x dollars per hour before the reduction in hours, how much does the employee earn per hour under the new system?

(A) 1/10
(B) x/9
(C) 9x/10
(D) 10x/9
(E) 9x
Since the number of hours now (36) is less than that earlier (40), while the payment is the same, the per hour rate is going to be greater than the current x dollars per hour.

Only two options greater than x qualify, Option D and E.

From 40 hours to 36 hours, the increment in rate is given by a factor 40/36 = 10/9.

Thus, the correct answer is 10/9*x = 10x/9 dollars per hour.

The correct answer: D

Hope this helps!

-Jay
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by Scott@TargetTestPrep » Wed Aug 01, 2018 3:33 pm
BTGmoderatorDC wrote:A business firm reduces the number of hours its employees work from 40 hours per week to 36 hours per week while continuing to pay the same amount of money. If an employee earned x dollars per hour before the reduction in hours, how much does the employee earn per hour under the new system?

(A) 1/10
(B) x/9
(C) 9x/10
(D) 10x/9
(E) 9x
We can let the original amount of money paid = n, and thus:

n/40 = x

n = 40x

Thus after the reduction in hours, the hourly wage is now:

n/36 = 40x/36 = 10x/9

Alternate Solution:

Since the employee used to work for 40 hours, the employee earns 40x dollars per week. We are told that the weekly wage is not changed, while work hours are decreased to 36. Thus, the employee will now earn 40x/36 = 10x/9 dollars per hour.

Answer: D

Scott Woodbury-Stewart
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[email protected]

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by [email protected] » Sun Aug 05, 2018 6:36 pm
Hi All,

We're told that a business firm reduces the number of hours its employees work from 40 hours per week to 36 hours per week while continuing to pay the SAME TOTAL amount of money. If an employee earned X dollars per HOUR before the reduction in hours, we're asked how much the employee earns per HOUR under the new system. This question can be solved in a couple of different ways, including by TESTing VALUES.

IF.... X = $10,
then the employee used to earn $400 for 40 hours of work.
The employee still earns $400 total, but now it's for 36 hours of work.
That is a pay rate of $400/36 = $100/9 = $100 for every 9 hours, thus, we're looking for an answer that equals 100/9 when X = 10. There's only one answer that matches...

Final Answer: D

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
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